Skittish Israel Pares F-35I Extras
Barbara Opall-Rome, Defense News, Nov 17 2008
TEL AVIV – Stunned by projected program costs for their Israel-unique version of the F-35, Israeli air force and defense officials are struggling to pare a hefty list of customized subsystems and add-ons that threaten to ground the aircraft as unaffordable. Meanwhile, the CEO of F-35 JSF prime contractor Lockheed Martin dangled the possibility of more workshare for Israeli firms if the government places its orders promptly. In September, US program officials gave rough price and availability data to their Israeli counterparts, who reacted with sticker shock to the price tag of $200m per plane. Since then, both sides have been seeking a new configuration that can meet IAF performance and budget requirements. The Israeli General Staff had been expecting to pay about $2b for the first 25 aircraft. “It’s unbelievable,” a member of the General Staff said. “First it was $40m to $50m, and then they told us $70m to $80m. Now, we’re looking at nearly three times that amount, and who’s to say it won’t continue to climb?”
Pentagon estimates put total program costs for Israel’s planned 75-aircraft buy as high as $15.2b. That figure includes all 75 aircraft, engines, electronic warfare and C4I systems, training and logistics support and a host of other services, features and capabilities, including “unique systems for sovereign requirements.” A fairly detailed summary was published in a Pentagon notification to Congress dated Sep 29. In a meeting last month with reporters here, Tom Burbage, Lockheed’s vice president and general manager of the JSF program, estimated flyaway costs at $47m in 2002 dollars or about $80m in projected 2014 dollars. In meetings here the week of Nov 10, Lockheed CEO Robert Stevens noted that seven Israeli firms already have secured a combined $200m in contracts for JSF. Burbage, in his visit last month, was more explicit, citing a potential $500m worth of Israeli content for inclusion in the program.
Niqnaq 